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Every trader has at least one person who influenced him/her at a critical stage of his trading development.

Mark Douglas was that for me although he died around the time I started trading. Douglas was my game changer, probably because my difficulties with trading were mostly based on an inadequate knowledge of the psychology of trading.

I also learnt much from a wide range of other traders, who you will see quoted on this website. Everyone taught me at least one thing which became part of my trading make-up. I implore you to find yourself an influencer and to learn from all the knowledgeable traders accessible via the Internet.

Mark Douglas quotes

• An edge (advantage) exists when the odds are in my favour that someone will come in, and act in a away that will make my trade work;
• Beliefs control our perception of information;
• Thinking outside the boundaries of your beliefs is called creative thinking;
• Our beliefs shape how we feel about the results of our actions;
• If the external environment can express itself in an infinite combination of ways, then there’s really no limit to the number and types of beliefs available to be aquired about the nature of our existence
• Simply put, the truth is a function of whatever works in relation to what we are trying to accomplish at any given moment;
• Beliefs have three basic characteristics:
• it resists any force that would alter their present form;
• all active beliefs demand expression;
• beliefs keep on working, regardless of whether or not we are consciously aware of their existence in our mental environment;
• The beliefs that cause us the most diffculty, are those that were acquired from others without our conscious consent. Those are beliefs we acquired when we were too young and uninformed to realise the negative implications of what we were being taught;
• It does not occur to us that the problems we may be having with the quality of our lives (lack of happiness, a sense of dissatisfaction or lack of success in some area) are rooted in our beliefs;
• The moment your mind becomes convinced that you know, you stop considering all the unknowns;
• An unrealistic expectation is any expectation that does not correspond with the possibilities that are available from the situation (market);
• A constant flow of both known and unknown variables, creates a probabilistic environment where we don’t know for certain what will happen next (at best we know what may probably happen);
• If your memory tells you that a situation is exactly the same as a previous experience, it is not true. Because although it appears the same, the people involved are probably not the same, nor do they have exactly the same views and emotions as before;
• The only expectation of what will happen in the future, is that anything can happen. That is the only truth;
• People’s beliefs are revealed by their actions;
• The degree to which you think you know, assume you know, or need to know what will happen next, equals the degree to which you will fail;
• Most of us have no concept of the extent to which we are continually surrounded by the invisible opportunities inherent in the information we’re exposed to;
• Everything that exists, generate information about the nature of its existence;
• Accepting risk means accepting the consequences of your trades (decisions) without emotional discomfort or fear;
• You will make errors, as long as you’re afraid that what you want or what you expect, won’t happen;
• You can’t rely on the market to make you consistently successful, any more than you can rely on the outside world to make you consistently happy. People who are truly happy don’t have to do anything in order to be happy;
• Definition of a winning attitude: a positive expectation of your efforts, with an acceptance that whatever results you get, are a perfect reflection of your level of development and what you need to learn to do better ;
• Think about it for a moment. If you’re not responsible for your results, then you can assume there’s nothing for you to learn, and you can stay exactly as you are;
• If you think you are right, calculating the potential risk becomes irrelevant;
• Emotional pain is the universal response when the outside world expresses itself in a way that doesn’t reflect what we expect or believe to be true;
• Risk acceptance is a life skill;
• Does your attitude create fear or confidence in your life? You cannot change facts, you can change your attitude. Is your view distorted by a fear of what will happen or not happen?
• A mindset is a unique set of attitudes that dictate how effective you will be in any given circumstance, and it allows you to stay positive in adverse situations;
• The problem with economic predictions is that they are rational, while the factors that influence what occurs, are irrational;
• Reality is created by people’s expectations and beliefs. Therefore reality may be fact, but it is rarely realistic;
• The problem with the plans you make is that it does not account for the plans other people make. The influence of their plans on your plan may make your plan succeed or fail
• The beliefs that cause us the most difficulty, are those that were acquired from others without our conscious consent. Those are beliefs we acquired when we were too young and uninformed to realise the negative implications of what we were being taught;
• It does not occur to us that the problems we may be having with the quality of our lives (lack of happiness, a sense of dissatisfaction or lack of success in some area) are rooted in our beliefs;
• The moment your mind becomes convinced that you know, you stop considering all the unknowns;
• An unrealistic expectation is any expectation that does not correspond with the possibilities that are available from the situation (market);
• A constant flow of both known and unknown variables, creates a probabilistic environment where we don’t know for certain what will happen next (at best we know what may probably happen);
• If your memory tells you that a situation is exactly the same as a previous experience, it is not true. Because although it appears the same, the people involved are probably not the same, nor do they have exactly the same views and emotions as before;
• The only expectation of what will happen in the future, is that anything can happen. That is the only truth;
• People’s beliefs are revealed by their actions;
• The degree to which you think you know, assume you know, or need to know what will happen next, equals the degree to which you will fail;
• Most of us have no concept of the extent to which we are continually surrounded by the invisible opportunities inherent in the information we’re exposed to;
• Everything that exists, generate information about the nature of its existence;
• Accepting risk means accepting the consequences of your trades (decisions) without emotional discomfort or fear;
• You will make errors, as long as you’re afraid that what you want or what you expect, won’t happen;
• You can’t rely on the market to make you consistently successful, any more than you can rely on the outside world to make you consistently happy. People who are truly happy don’t have to do anything in order to be happy;
• Definition of a winning attitude: a positive expectation of your efforts, with an acceptance that whatever results you get, are a perfect reflection of your level of development and what you need to learn to do better ;
• Think about it for a moment. If you’re not responsible for your results, then you can assume there’s nothing for you to learn, and you can stay exactly as you are;
• If you think you are right, calculating the potential risk becomes irrelevant;
• Emotional pain is the universal response when the outside world expresses itself in a way that doesn’t reflect what we expect or believe to be true;
• Risk acceptance is a life skill;
• Does your attitude create fear or confidence in your life? You cannot change facts, you can change your attitude. Is your view distorted by a fear of what will happen or not happen?
• A mindset is a unique set of attitudes that dictate how effective you will be in any given circumstance, and it allows you to stay positive in adverse situations;
• The problem with economic predictions is that they are rational, while the factors that influence what occurs, are irrational;
• Reality is created by people’s expectations and beliefs. Therefore reality may be fact, but it is rarely realistic;
• The problem with the plans you make is that it does not account for the plans other people make. The influence of their plans on your plan may make your plan succeed or fail

Books by Mark Douglas

Trading in the Zone
The Disciplined Trader

What is an edge?

Other sources that helped me on the trading road.